Sterling exchange rates continue to slide – How low can the pound go?
Sterling exchange rates have seen further losses against both Euro and Dollar over the course of the trading week, as investors and speculators alike have made it clear there is a lack of confidence in the Pound at present.
With the cost of living crisis bearing down on the UK economy and a prolonged recession on the cards we have started to witness a move away from the pound and it appears that it is being treated much more like a riskier currency rather than...
Why Are Sterling Exchange Rates So Low? Why Is The Pound Dropping?
Sterling exchange rates have taken another huge hit overnight as the trend of weakness for the pound continued straight at the start of the open on the Asian markets last night.
The Pound dipped all the way down to the 1.02s against the Dollar and the 1.07s against Euro as investors and speculators rushed to drop the currency and this caused a great deal of weakness.
So why are Sterling exchange rates dropping?
Since the announcement of the mini-budget and Kwasi Kwarteng's plans to cut taxes we...
What will 2023 Bring For Sterling Exchange Rates?
Sterling exchange rates have dropped on the whole throughout 2022 and it is fair to say there are a number of quite obvious reasons behind the poor performance of the pound over the course of the year.
Here is a summary of GBP paired against a selection of major currencies and the movement since 1st Jan 2022 as an example.
GBP/USD -10.79%
GBP/EUR -4.97%
GBP/CAD -5.44%
GBP/AUD -4.69%
GBP/CHF -9.97%
All in all, the above suggests the pound indeed had a torrid time of it, most notably shortly after Liz Truss...
Will pound sterling keep rising? Focus on Bank of England Thursday
Will the pound keep rising? To assess how the Bank of England meeting Thursday will affect the pound, we can look at the forecasts.
We researched data across 54 banks and just 9 think GBPEUR will be above current levels (1.1462) in the coming months.
The other 80% plus forecasters, indicated rates will be below 1.14. The research shows there might not be much headroom on GBPEUR levels.
The pound ended the first week of May well. Sterling hit the highest points of the year against the...
What to expect from GBP exchange rates in 2023?
Looking back on 2022, GBP exchange rates had one of the most volatile years on record especially against the US Dollar.
After such a bumpy ride for the Pound you may expect to see less volatility for GBP exchange rates but with economic growth set to drop this can never be ruled out, especially at the beginning of the year.
To recap 2022, GBP/USD experienced its worst annual performance since 2016 which was an exceptional year owing to the unexpected Brexit vote which caught the currency...
Will the pound get stronger? Growth figures show a surprise positive reading on Friday
The UK looks set to avoid a recession in 2022 as GDP data was announced on Friday. The UK economy grew by 0.1% in November, with the services sector providing a welcome boost when a 0.2% expansion was announced.
This came as a surprise to many forecasters, with a 0.3% GDP contraction the market expectation. Despite this, the pound failed to make any significant gains against the Euro, finishing the week trading at 1.1280 – a near 0.75% decrease since markets opened on Monday.
The Pound...
Sterling hits a 10-month high against the Euro, could the Pound climb even higher?
The financial markets are gearing up for what could be a busy week for exchange rates, particularly the Pound as on Thursday the Bank of England are expected to hike interest rates.
The base rate currently sits at 4.5% after 12 consecutive interest rate hikes from the Bank of England (BoE).
The expectation is for another 0.25% hike this Thursday, although analysts believe there is a 25% chance of a 0.5% hike. This would be an unusual move from the BoE in my opinion as they...
How will the Autumn Statement influence the pound?
The Autumn Statement is scheduled for 17th November, and will see Jeremy Hunt, the Chancellor outline fiscal policy for the new Rishi Sunak administration. The pound can be very sensitive to changes in government policy on tax and spending, particularly given the UK's current precarious financial position.
We might not expect quite the same fireworks as saw following the last fiscal event in September and early October, with Kwasi Kwarteng and Liz Truss, but that episode highlights the potential volatility we can see from changes...
The Pound loses momentum, could next year bring further falls for GBP exchange rates?
GBP exchange rates have cooled during the month of December, with GBP/EUR and GBP/USD both easing from the 3-month highs they begun the month trading at.
There had been a considerable upward momentum for GBP exchange rates after Jeremy Hunt became Chancellor of the Exchequer and reversed the questionable tax cuts made by the previous Chancellor. Rishi Sunak replacing Liz Truss also buoyed the financial markets sentiment towards the UK economy and this helped give the Pound a boost, but perhaps the honeymoon period is...
Pound Sterling Forecast – Has the Pound Peaked?
Does the latest FX research and data suggest the pound has peaked?
The pound has very recently touched fresh highs on GBPEUR of 1.1546 and GBPUSD of 1.2679. But since those highs this month, we have seen declines down to 1.1475 and 1.2457 respectively.
This begs the question, has the pound peaked?
Well, our research for a number of weeks has exposed potential sterling weakness. We highlighted the historical “Sell in May, go away” trend of sterling being weaker in May here. This strategy, had seen the...
